EX-12.1 4 g15178exv12w1.htm EX-12.1 EX-12.1
Exhibit 12.1
POPULAR, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
                                                         
    For the nine month ended           Year Ended December 31,    
    September 30   September 30                    
    2008 (1)   2007 (1)   2007 (1)   2006 (1)   2005 (1)   2004 (1)   2003 (1)
Income from continuing operations before income taxes and cumulative effect of accounting changes
   $ 88,880     $ 436,203     $ 266,909     $ 551,893     $ 665,045     $ 536,128     $ 573,026  
 
                                                        
Fixed charges :
                                                        
 
                                                        
Interest expense
     742,243       932,486       1,246,577       1,200,508       859,075       543,267       687,107  
Estimated interest component of net rental payments
     22,741       22,273       31,296       25,670       23,755       21,593       19,921  
 
                                                        
Total fixed charges including interest on deposits
     764,984       954,759       1,277,873       1,226,178       882,830       564,860       707,028  
 
                                                        
Less: Interest on deposits
     528,596       552,657       765,793       580,094       430,813       330,351       342,891  
 
                                                        
Total fixed charges excluding interest on deposits
     236,388       402,102       512,080       646,084       452,017       234,509       364,137  
 
                                                        
Income before income taxes and fixed charges(including interest on deposits)
   $ 853,864     $ 1,390,962     $ 1,544,782     $ 1,778,071     $ 1,547,875     $ 1,100,988     $ 1,280,054  
 
                                                        
Income before income taxes and fixed charges(excluding interest on deposits)
   $ 325,268     $ 838,305     $ 778,989     $ 1,197,977     $ 1,117,062     $ 770,637     $ 937,163  
 
                                                        
Preferred stock dividends
     20,210       8,935       11,913       11,913       11,913       11,913       9,919  
 
                                                        
Ratio of earnings to fixed charges
                                                        
 
                                                        
Including Interest on Deposits
     1.1       1.5       1.2       1.5       1.8       1.9       1.8  
 
                                                        
Excluding Interest on Deposits
     1.4       2.1       1.5       1.9       2.5       3.3       2.6  
 
                                                        
Ratio of earnings to fixed charges & Preferred Stock Dividends
                                                        
 
                                                        
Including Interest on Deposits
     1.2       1.4       1.2       1.4       1.7       1.9       1.8  
 
                                                        
Excluding Interest on Deposits
     1.6       2.0       1.5       1.8       2.4       3.1       2.5  
 
(1)   On August 29, 2008, Popular, Inc. (the “ Corporation”) announced an agreement to sell loans, residual interests and servicing related assets of Popular Financial Holding (“PFH”) and Popular, FS to Goldman Sachs Mortgage Company, Goldman, Sachs & Co. and Litton Loan Servicing, LP. The transaction closed on November 3, 2008.
 
    In addition, on September 18, 2008, the Corporation announced the consummation of the sale of manufactured housing loans of PFH to 21st Mortgage Corp. and Vanderbilt Mortgage and Finance, Inc. The above transactions and past sales and restructuring plans executed at PFH in the past two years have resulted in the discontinuance of the Corporation’s PFH operations and PFH’s results are reflected as such in the Corporation’s Consolidated Statements of Operations. The computation of earnings to fixed charges and preferred stock dividends excludes discontinued operations. Prior periods have been retrospectively adjusted on a comparable basis.